Chocolate factory in Davao region by Japan. CDAMI –controlled cooperatives to supply beans. European markets also interested in Cacao from PH.

Chocolate City – Davao.



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Things are changing for the better in the setting up of industrial units in the Philippines. Needs of lowering production costs is driving such moves of industries closer to the source of vital raw materials. The motivation for such a change is a necessity for reduction of production costs.

Companies that traditionally procured their raw materials from far away are cutting costs by producing closer to the source. Thus, recurring haulage charges will cease.

Therefore, a Japanese manufacturer of chocolates decided to move his production unit to the Davao region in the Philippines. Tentatively, he has narrowed down the site to put up its plant in Panabo or in Madaum.

The ED of Cacao Industry Development Association of Mindanao (CDAMI), Val Tutur divulged this at Kapehan sa Dabaw on Monday. However, the identity of the company was kept a secret pending finalizing of negotiations.

The company was procuring beans from the Philippines but the packing, transportation and delivery was getting higher. Consequently, the chocolate manufacturer decided to move since setting up production elsewhere was costlier, Tutur added.

Philippines is a source of cacao beans that are the raw material for chocolate production. The company from Japan is closely negotiating all aspects of the arrangements with the government of the Philippines.

They have been pursuing the formalities with the Department of Agriculture and the Department of Trade and Industry. Among other details that they were finalizing, they were also negotiating the quality of the Cacao.

Tutur further elaborated that the recent campaign to popularize Cacao had produced beneficial results. The quality of had greatly improved over the last five years.

The farmers are trained in the modern agricultural practices resulting in:
• Higher yield of beans,
• Healthier produce, and
• More enquiries from procuring and purchasing parties like the European Union which started buying Filipino

This was the result of introducing better farming methods, better manufacturing and processing and better storage techniques. Thus, Davao Cacao is now in great demand.

Cacao Industry Development Association of Mindanao Inc. (CIDAMI) is the authoritative agency for disbursement of Cacao to the outside world. This is provided by the cooperatives that function under its control.

In this particular case, the responsibility to supply the beans to the Japanese dwells on the following cooperatives:
• One cooperatives from Marilog,
• Four cooperatives from Calinan, and
• Two cooperatives from Paquibato.

Furthermore, Tutur informed that Sm Ecoland Davao is the venue for the Davao Chocolate Festival. The fourth edition of this popular event is slated for October 12 to 15.

Widespread publicity to this event encourages farmers to come forward to take up Cacao farming. The subject of chocolate-making is explained in detail for publicity over the four days.

The gates are now open for the Cacao city located in Pasalubong Center at Palma Gil Street.This chocolate center is a reality due to the efforts of the CDAMI.

The government of Davao City supported CDAMI in an effort to launch it as the chocolate capital of the Philippines.
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Umrao Singh
Written for: Lars-Magnus Carlsson.
Wednesday, October 11, 2017